Domestically, lower commodity prices have weakened the economy, resulting in few businesses having any pricing power. Photo: AFP

The bank’s research found that many businesses had limited or no understanding of one or more of Australia’s FTAs, saying the agreements were too complex to understand.

But James Hogan, HSBC’s head of commercial banking in Australia, said once understood and adopted into business strategies, FTAs delivered handsome benefits.

Of the companies using FTAs, 75 per cent said their exports had grown, thanks to having access to new markets an business opportunities and a wider client base, he said.

“Clearly, there is a knowledge gap amongst Australian businesses on how to make the FTAs work for their business,” Mr Hogan said.

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“Australia is an active participant in trade agreements, with … seven under negotiation, including a milestone agreement expected with China later this year. However, all the effort in negotiating these agreements will be in vain if businesses are not using them.”

Australian Fashion Labels is one business that admitted to having little knowledge about how to take advantage of an FTA.

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Managing director Dean Flintoft said he thought such agreements “took care of themselves” once signed.

“It’s really the non-tariff side of FTAs. I was reading a few last night and I thought ‘wow’,” Mr Flintoft said.

“It’s the non-tariff things that gets very complicated and that’s more of a benefit to us.”

In addition to removing or reducing tariff’s, FTAs can increase the efficiency of trading goods and services, removing regulatory barriers and encourage more foreign investment between trading partners.

“We’re in the process of setting up a division in China,” Mr Flintoft said. Last year we set up a division in the US, and with the US FTA there are things that would benefit us in terms of moving staff and resources. But to be honest I hadn’t even thought of looking into a FTA until the last couple of days.

“It’s just a matter of wading through it to get to the industry specific stuff.”

The Abbott government signed FTAs with Japan and South Korea this year, and most businesses and commentators expect an agreement with Australia’s biggest trading partner China to be reached in November after more than eight years of negotiations.

Andrew Hudson, trade policy head at the Export Council of Australia, expected a FTA with China would help businesses, particularly in agriculture, who felt they were overlooked in the Japan and South Korea agreements

“The rice growers missed out badly under the Korean and Japanese deal for various cultural reasons, but I think there is a big market for them. Exports into China of primary produce and milk and are alike are significant,” Mr Hudson said.

“Pretty much anybody who has ever thought of trading there will get some benefits.”

But Mr Hudson said while there were opportunities, businesses needed to be realistic in their expectations.

“We are not going to end up with the perfect comprehensive deal. We are going to start with a deal that will be in part aspirational, it will be working towards outcomes down the track.

“We’re going to be a bit defensive on investment so we can’t expect them to totally up their market and they’re the big player in the market so they can call the shots.”

HSBC surveyed 800 companies in the first quarter of 2014, with annual revenues of $US50 million to $US10 billion ($53.55 million to $10.70 billion) for the study.